Applying for a loan next month... any help appreciated.

sparklesparkle88

This is a long one, I apologise in advance!

Officially I am in full time employment although I don't start my new job on Monday (with Lloyds) and just wanted a little bit of advice regarding a loan application I'm planning with Halifax and their loan manager.

Basically, my boyfriend and I have had a really unlucky year in regards to finance, most recent thing being our car engine blowing so our car being scrapped, buying a car and it breaking down on the same day, etc!

I went to Halifax to see if I was eligable for a loan as a lot of my savings have gone towards the car incident (lol). Due to me not being in employment until the middle of the month, the manager I spoke to said they couldn't process an application for me at that time, but because my account history was excellent, she increased my overdraft amount to £1500 without any hesitation and told me to apply with her for a loan after my first payday at my new job. As I'll be working for HBOS, I'm entitled to staff rates, etc. She explained this to me when I spoke to her and said I can use the loan to repay the overdraft (I've never ever used my overdraft in the 7+ years of being with Halifax).

I don't really have much dealings in regards to credit, apart from a mobile phone contract I have been with for about 9 months and a few direct debits every month. I am on the Electoral Roll BUT registered at my old address I used to live at and was there for about 18 years, not updated it to my new area yet (been living here for 2 years this year). I called the manager I spoke to and told her my worries about not having much credit history and she said no history was better than bad history and if I'm refused a loan on the basis of no credit history, she can put an appeal through to turn the decision. She said that my account history is excellent and well managed, I have been with them for years, and this is taken into account as well as the fact that I'll be a staff member. I was also told it would be better for me to apply for this loan after I'm paid my first wage (end of March) to show salary has been paid and I've worked there over 30 days. I don't know if this makes any difference but working with a bank and other financial organisations in the past has meant I have had to go through credit checks (I'm sure not so strenuous as vetting for loans but still) in order to be employed and I have passed these also.

I know no one is psychic here BUT for a loan at the MOST (this is at a push) £5000, do my chances of approval sound good? Just looking for a bit of reassurance (and honesty!) as I don't want to be living above my means expecting to definately have this loan next month for a new car and to pay the overdraft off. Not very comfortable using the over draft as I've never used one before! Repayments will not be a problem as I'm great with finances but not too keen on credit cards so that's why I considered a loan instead.

Sorry about this being so long winded, just a bit of a vent as I didn't know where else to ask about this

---

N.B. - I have no CCJs, etc. on my credit history which would effect my application, at least not to my knowledge. My annual income is rougly about £14500 a year.

paddyrg

If it's from your new employer, the usual rules will change of course. But assuming you're earning enough to repay it comfortably you are probably fine.

However, I would suggest not doing it. You had a bad year financially last year, who's to say if next year is any better? Jobs are not for life sadly, or maybe you have a child and lots of new costs, or the car goes for a burton again. If you don't have any real debts now then that means you made it through - so just save save save in your new job - save until you have a few grand of slush fund to act as a cushion/buffer. It'll be cheaper and you'll feel safer in the long term!

barbarawright

If you really need a loan, your chances will be much enhanced by being on the electoral roll on the address you actually live in as that is what will be checked.

Blitz01

barbarawright wrote: »

If you really need a loan, your chances will be much enhanced by being on the electoral roll on the address you actually live in as that is what will be checked.

It will probably not make any difference at all actually.

27col

Why do you feel that you need a loan at this time. It would make more sense to use your salary to start to rebuild your savings rather than to waste it paying interest.

sparklesparkle88

Mainly because a car is an absolute necessity for our jobs and I don't want to do car finance as interest rates are sky high. The loan I'll hopefully be receiving will be at a staff rate of 6%, I was advised to do this by the bank to pay off my overdraft too.

I have been successful saving money in the past but it was a long process and I dont really have the time to wait. The only reason my savings are used up now is because I was living off them after quitting my old job (personal reasons) waiting for my new job, and was fine until our car decided to die. Already been down the "cheap car" route which has lead to cost me even more after it broke down on the SAME DAY it was bought as we were driving from the garage.

My other half pays the major bills while I get us through the month with food, shopping, any other costs so paying about £130 a month wouldn't be an immediate issue.

sparklesparkle88

barbarawright wrote: »

If you really need a loan, your chances will be much enhanced by being on the electoral roll on the address you actually live in as that is what will be checked.

This was something I was questioning too. I have been on the roll in the past but not at my current address. Will this make any difference as I've got record of living at my old address as well as being on the Electoral Roll, just not at my current address.

paddyrg

You will probably be fine - as I say the rules will all change if you're an employee! However it is probably worth keeping it as low as you can just to avoid overexposing yourself - 14k is about £230/week takehome, so make sure you can keep the term short and save at the same time - even if it means a lower loan :-) 6% is a cracking deal though!!